Exodus Movement, a listed cryptocurrency firm, has initiated legal action against W3C and its CEO, Garth Howat, in an effort to finalize the $175 million acquisition agreed upon in November of the previous year. The lawsuit, filed in the Delaware Court of Chancery, seeks to compel Howat to adhere to the obligations outlined in the November 24, 2025 Stock Purchase Agreement. Upon signing the deal, Howat and W3C received $80 million in loans from Exodus, with $10 million allocated directly to Howat, who subsequently claimed that repayment was not necessary, as stated in the lawsuit.
The lawsuit accuses Howat and W3C of engaging in a deliberate and improper attempt to evade completing the transaction, citing actions such as the misappropriation of millions of dollars from a subsidiary, falsification of documents submitted to government authorities, and the unauthorized dismissal and replacement of key personnel. Howat has yet to respond to requests for comment. W3C's subsidiaries, Baanx and Monovate, were instrumental in the development of the Crypto Life digital asset cards business, which collaborated with notable companies like Mastercard and MetaMask. Exodus CEO and Co-founder JP Richardson expressed confidence in the binding agreement, stating, 'We anticipate a swift resolution and expect the agreement to be fully honored.'